Calling all Economics experts

MTK · 06-08-2005, 05:15 PM

I have this question I'm having a problem with. My professor is giving me an answer but I have no clue how he's getting it. He's horrible at explaining things so I've given up trying to figure out his rationale.

Here's the problem, let me know what you think.

The Largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer's wage rate is $20, and the price of a printing press is $5000. The last printer added 20 books to total output, while the last press added 1000 books to total output. Is the publishing house making the optimal input choice? Why or why not? If not, how should the manager of Largo Publishing House adjust input usage.

06-08-2005, 05:15 PM	#1
MTK \m/ Join Date: Feb 2004 Age: 52 Posts: 99,737	Calling all Economics experts I have this question I'm having a problem with. My professor is giving me an answer but I have no clue how he's getting it. He's horrible at explaining things so I've given up trying to figure out his rationale. Here's the problem, let me know what you think. The Largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer's wage rate is $20, and the price of a printing press is $5000. The last printer added 20 books to total output, while the last press added 1000 books to total output. Is the publishing house making the optimal input choice? Why or why not? If not, how should the manager of Largo Publishing House adjust input usage. __________________ Support The Warpath! \| Warpath Shop

Calling all Economics experts

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